Thursday, September 8, 2011

Two New Buys for September

I have two new buys to share with investors for September: namely Check Point
Software Technology (NASDAQ: CHKP ), which helps its customers protect their
computers, and Dollar Tree (NASDAQ: DLTR ), which helps its customers protect
their wallets. The Internet is an amazing resource; it has been a key driver of
economic growth for this generation. However, it is not without its threats. For
an unsuspecting user, a wrong click could wreck havoc on a whole network of
computers. Thankfully, we have companies like Check Point, which is a worldwide
leader in securing the Internet. The company is particularly known for its
ZoneAlarm systems, which are designed to protect consumers from hackers, spyware
and identity theft. The company started in 1993 and was at the forefront of the
firewall industry. Fast-forward 18 years, and Check Point's products have won
more than 200 awards and serve literally tens of thousands of customers. CHKP
currently serves 100% of Fortune 100 companies, and 98% of Fortune 500
companies. The company has offices in 18 U.S. states and international
subsidiaries in 38 countries. CHKP has shown incredible resilience in the face
of the latest market volatility, and it has become a solid and reliable company
that will be a great addition to anyone's portfolio. For this company, the
bottom line speaks for itself. On July 18, the company reported second-quarter
revenues and earnings per share that trounced consensus estimates. Sales rose
15% and earnings rose 25%, which led to a 3% earnings surprise. The company said
it saw particular strength in intrusion-prevention systems and
application-control software during the quarter. Looking forward, Check Point
raised its third-quarter sales forecast to $300 million to $308 million and its
operating earnings guidance to 67 cents per share to 70 cents. For consumers
looking for a bargain, Dollar Tree delivers. Consumers shopping at one of their
4,089 U.S. locations can buy any of the following types of items for just $1:
housewares, glassware, dinnerware, cleaning supplies, candy, snacks, food,
health and beauty supplies, toys, gifts, gift bags and wrap, party supplies,
stationery and craft supplies and the list goes on. The Chesapeake, Va.-based
company's roots go back more than 50 years, and the company has striven to
maintain its track record as the largest and most successful single-price-point
retailer in the U.S. Dollar Tree's success lies in its tremendous bargaining
power with its suppliers; it can get wide variety of practical items for
unbeatable prices. Also, Dollar Tree recently has expanded its reach by
launching a shopping website where customers can get products shipped to the
nearest store or to their doorstep. As the company knows, one of the best ways
of coping with thinning wallets is to stretch each and every dollar. So, while
lean times hit other retailers particularly hard, Dollar Tree stores flourish!
Sales for the second quarter totaled jumped 12%, net income spiked 22% and
earnings rose 26% per share over last year. Now is the perfect time to add DLTR.
So, scoop up shares of this conservative stock.

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